Radar Interview: Town Gets In Line For Share Of Smithfield Pollution Fine

The Radar Interview

September 15, 1997|By SUSAN FRIEND Daily Press

Smithfield Foods is appealing a $12.6 million fine for water pollution violations and, consequently, the final decision in the case could be years off. Nevertheless, the scramble for the money is in full swing.

The U.S. Justice Department contends the money must go into the federal Treasury, while environmental groups like the Chesapeake Bay Foundation and the James River Association argue that the fine should benefit Virginia waterways. The town of Smithfield also has a position: Give the money to us, town leaders say, so it can benefit the same area that was damaged. The town's proposal includes a number of projects, ranging from storm water treatment and cleanup to the building of riverfront parks.

Radar talked recently to Town Manager Peter Stephenson about the plan and the town's relationship with Smithfield Foods, which employs some 3,000 people. Here are excerpts from that interview:

RADAR. Tell me why the town should get the money.

STEPHENSON. The town, I think, has some good ideas for what to do with the money, things that would directly benefit the water quality and the environment here. Obviously, the town -because of our industry - has gotten somewhat of a bad rap over the years. Even recently, even though the violations are past violations, we still continue to get somewhat of a bad name or bad press for the violations that had occurred previously with our industry.

And the town wants to try to do something very positive and kind of be a leader, hopefully, in taking what is a real opportunity and making something happen in the community. We would like to have the control to do some things here locally. Obviously, if it goes to the federal government, it may end up in Wisconsin or on the Eastern Shore or whatever. We feel that at least the bulk of it should be spent here to clean up or do things that will improve the water quality of the Pagan, and its tributaries. I mean, that makes sense. This is where it should be spent.

So, we've got some needs, and probably the most significant - half of our proposal - are stormwater management related and shoreline stabilization and things like that. But it's a fairly expensive project to do on a limited budget otherwise.

RADAR. You talk about the rap the town has taken. But wasn't the town very critical of the federal lawsuit against Smithfield Foods? Didn't the town try to rally citizens to the side of Smithfield Foods?

STEPHENSON. We didn't really do any formal rallying, but obviously there's a lot of pride here in the community. And again, I think the frustration level was high over the fact that these were past violations. You know, Gwaltney had connected a year ago to the Hampton Roads Sanitation District. We had connected a year ago to HRSD, and Smithfield Packing was well on its way to connecting. And it just seemed like it was a little late in the game. If the suit was going to take place, it should have occurred while the violations were happening, not several years after the fact.

But I think really, it was more just the pride in the community. There is just a tremendous amount of pride. It is a very beautiful community and people just tend to think - if they've never been here - oh, my God, they must be just dumping raw sewage into the river, it must look like heck. And obviously, it's a very nice community, and even the river itself, even with the past violations, it's a very vibrant ecosystem. People do fish from it, they do eat the fish from it, boat in it and swim in it. It's nothing like I think some people envisioned. So I think the frustration level was just a little high with all of that.

Our concern, too, when the mayor and I were interviewed, we were concerned about the impact of the suit on Smithfield Foods, the fact that if it were significant, we may end up losing jobs. That was something the mayor expressed concern about. Certainly, they are our largest employer. In terms of our overall tax base, it represents about 17 percent, but it's also the largest employer.

RADAR. So the town felt caught in the middle?

STEPHENSON. Yeah, that's probably a good way to put it.

RADAR. Well, didn't the town end up taking the position that the taxes and benefits from Smithfield Foods outweighed any environmental damage the company might have caused?

STEPHENSON. No, I wouldn't say so. I guess, like you say, the town is kind of stuck in the middle. With what we had control over, we certainly tried to do everything we could to be in compliance ourselves. Certainly, since I've been here, the industry has demonstrated it is willing to pay a significant amount of money to do the right thing. They have connected, at great expense to themselves, to the Hampton Roads Sanitation District and are advancing all their treatment processes and doing what needs to be done.

RADAR. Well, do you agree that the company's position in the suit was anything but humble?